63d  Congress 
Special  Session  of  V 
the  Senate  ’ 


SENATE 


Document 
No.  5 


The 

PROBLEM  OF  RURAL 
CREDIT  OR  FARM  FINANCE 
IN  THE  UNITED  STATES 
AND  A PROGRAM 


I 


PRESENTED  BY  MR.  GORE 
March  17,  1913.— Ordered  to  be  printed 


WASHINGTON 


1913 


1 

[ 

! 


i 


3 


THE  PROBLEM  OF  RURAL  CREDIT  OR  FARM  FINANCE  IN  THE 
UNITED  STATES  AND  A PROGRAM. 


No  problem  which  confronts  the  farmers  of  the  twentieth  century 
is  more  important  than  that  of  rural  credit  or  farm  finance.  A cen- 
tury ago  conditions  were  different.  The  problem  then  was  not  so 
difficult  or  so  important.  At  the  present  time,  almost  every  farmer 
^ at  some  time  during  the  year,  or  during  a series  of  years,  needs  more 
money  or  credit  than  he  has  available.  This  is  true  in  every  civilized 
country  where  farm  products  enter  the  world  market. 

No  country  in  the  civilized  world  is  so  nearly  without  satisfactory 
and  adequate  rural  credit  facilities  as  is  the  United  States  at  the 
present  time,  or,  if  satisfactory  institutions  and  adequate  facilities 
exist,  no  group  of  farmers  is  further  behind  the  times  in  the  utiliza- 
tion of  these  institutions  and  facilities  than  are  the  American  farmers. 
At  the  same  time  no  country  is  more  able  to  provide  the  necessary 
institutions  and  facilities  than  the  United  States,  and  no  group  of 
A people  can  offer  better  bases  for  credit  than  the  American  farmers. 

Admitting  then,  first,  that  at  the  present  time,  unlike  the  condition 
V of  a century  ago,  farmers  need  a great  deal  of  money  or  credit;  second, 
^ that  we  do  not  at  the  present  time  have  adequate  credit  institutions 
^ or  facilities,  or  if  we  have  them  do  not  use  them  to  their  fullest  capac- 
^ ity;  third,  that  adequate  bases  or  securities  are  available;  and, 
^ fourth,  that  credit  would  be  forthcoming  {a)  if  farmers  understood 
the  possibilities  of  the  present  institutions,  or  (&)  if  slight  changes 
were  made  in  our  present  system,  or  (c)  if  new  institutions  were  estab- 
lished, it  behooves  us  to  take  active  steps  either  to  make  the  changes 
'v^ich  are  needed  and  which  can  be  made  with  so  little  effort,  or  to 
show  farmers  how  to  take  full  advantage  of  the  present  opportunities 

IS  ANYTHING  WRONG? 

F 

There  are  many  who  say  that  there  is  nothing  wrong  with  the 
present  vsystem  and  that  all  who  deserve  credit  now  receive  it  easily, 
j But  there  are  a hundred  evidences  that  something  is  wrong  with  the 
present  system,  else  why  the  activity  of  the  Southern  Commercial 
, Congress?  That  body  has  arranged  for  a commission  of  100  or  more 
members  collected  from  all  parts  of  the  United  States  who  will 
spend  several  months  in  Europe  during  the  coming  summer  at  a cost 
of  probably  $125,000,  gathering  information  concerning  farm  finance 
in  European  countries.  Again,  why  the  activity  of  the  various  State 
bankers’  associations  and  even  the  American  bankers’  association? 
These  organizations  have  been  sending  members  as  delegates  to  study 
the  rural  credit  system  of  Europe  during  the  last  year,  and  many 
bankers  have  gone  independently  to  study  the  same  problems.  Nor 
IS  that  all.  Even  the  Department  of  Agriculture,  which  in  the  past 


4 RURAL  CREDIT  OR  FARM  FINANCE  IN  THE  UNITED  STATES. 

has  largely  devoted  itself  to  scientific  ])robleins  of  production  and 
which  has  become  the  leading  office  of  its  kind  in  the  world  in  this 
res})ect,  but  which  has  largely  neglected  the  problems  connected  with 
the  business  side  of  farming,  has  at  last  made  a hasty,  but,  so  far  as 
available  reports  show,  a more  or  less  superficial  study  of  present 
conditions  and  needs  of  farmers  in  this  country.  That  department 
has  given  the  public  the  benefit  of  some  of  its  findings.  The  Depart- 
ment of  State  has  become  active  also.  Ambassadors  and  ministers 
to  European  countries  have  been  called  upon  to  report  in  detail  as  to 
the  status  of  agricultural  credit  in  their  respective  countries.  Indeed, 
President  Taft  practically  commissioned  the  ambassador  to  France 
to  act  as  general  in  chief  of  this  crusade  to  bring  all  of  the  new  light 
possible  to  the  American  people.  The  Division  of  Information  of 
the  Department  of  State  has  undertaken  to  supply  the  press  with 
little  stories  pertaining  to  improved  rural  credit  gleaned  from  reports 
from  abroad.  Further  than  this,  the  President,  swept  on  by  the 
great  clamor  which  bids  fair  to  bring  with  it  a reorganized  system  of 
farm  finance,  although  possibly  influenced  to  some  extent  by  political 
exigencies,  addressed  a message  to  the  governors  of  the  various  States 
calling  upon  them  to  marshal  all  the  forces  at  their  disposal  to  carry 
on  the  new  campaign  for  improved  rural  credit.  Documents  were 
attached  to  his  letter  contending  that  a quarter  of  a billion  dollars 
a year  could  be  saved  to  the  farmers  of  this  country  by  a change  of 
some  kind.  The  governors  of  the  different  States  discussed  the  sub- 
ject thoroughly  at  a great  conference  at  Richmond,  Ya.,  and  even 
conferred  with  the  President  at  the  White  House  concerning  the 
proper  steps  to  take.  And,  finally,  as  if  determined  to  make  sure  that 
all  available  information  were  brought  together.  Congress  has  appro- 
priated $25,000  to  be  expended  in  an  effort  to  assemble  all  data. 

It  would  seem  that  volumes  have  been  written  during  the  last  few 
months  and  other  volumes  are  doubtless  being  written.  College 
professors  are  writing  in  scientific  journals,  farm  papers  are  clamoring 
for  discussions  on  tliis  subject,  and  many  schemes  are  being  ad- 
vanced— some  unfortunately  poorly  digested.  Towering  above  aU 
the  rest,  the  International  Institute  of  Agriculture,  with  headquarters 
. /at  Rome,  Italy,  is  now  sending  volumes  to  this  country  describing 
^ rural  credit  systems  in  various  European  countries,  and  each  of  the 
three  leading  political  parties  in  tliis  country  has  a plank  in  its  plat- 
form pledging  reforms.  As  a result  of  all  tliis  activity  the  country 
may  be  deluged  with  a mass  of  legislation  wliich,  unless  properly 
directed,  might  comphcate  the  situation  rather  than  simphfy  it. 

Unfortunately,  practically  all  of  the  studying  which  has  been  done 
has  reference  to  conditions  in  the  European  countries.  Unfortunately, 
also,  a considerable  number  of  people  who  are  dealing  with  this 
question  assume  that  some  European  system  can  be  bodily  transported 
to  this  country.  This  assumption  naturally  is  based  upon  the  further 
assumption  that  the  institutions  wliich  we  now  have  in  this  country 
can  not  do  the  business  because  they  are  not  now  doing  the  business, 
and  that,  therefore,  a complete  new  set  of  institutions  must  be 
established  in  aU  parts  of  our  land.  Others,  however,  are  satisfied 
that  a slight  change  in  laws  is  all  that  is  necessary. 

The  above  picture  may  seem  to  be  overdrawn.  I think  not.  I, 
myself,  am  an  enthusiastic  supporter  of  the  program  for  investigating 
further  the  situation  in  European  countries  and  beheve  that  the 


EUEAL  CEEDIT  OE  FAEM  FINANCE  IN  THE  UNITED  STATES.  5 

Southern  Commercial  Congress  has  taken  the  first  long  step  looking 
toward  some  definite  solution  of  this  problem,  and  I hope  it  may  be 
supported  in  its  efforts  by  all  persons  really  interested  in  improving 
the  present  system.  But  at  the  same  time  I believe  that  the  time  has 
come  when  we  must  look  into  the  situation  as  it  actually  is  in  tins 
country,  in  order  that  we  may  not  attempt  things  winch  are  un- 
necessary and  do  tilings  which  will  have  to  be  undone  at  a later  date. 
Fortunately,  some  of  the  foremost  leaders  in  the  movement  in  tliis 
country  at  the  present  time  have  as  broad  an  outlook  as  any  states- 
men of  the  time.  It  will  be  their  effort  to  guide  tilings  aright  and 
prevent  actions  which  will  throw  discredit  on  the  movement.  And 
yet  I believe  it  not  improper  to  sound  a note  of  warning,  because 
it  is  already  clear  that  men  from  many  States,  even  in  the  State 
legislatures  and  in  the  National  Congress,  are  now  drawing  up  bills 
which  they  hope  to  force  through  into  laws  without  further  study, 
and  it  will  not  be  at  all  surprising  if  hundreds  of  measures  appear 
during  the  next  few  months.  There  has  not  yet  been  any  complete 
di^nosis  of  the  disease  that  is  to  be  cured.  Tliis  should  precede  the 
s^rch  for  a remedy. 

''The  tasks  at  the  present  time  are  four  in  number;  First,  a com- 
prehensive study  of  the  needs,  the  real  needs,  of  this  country;  sec- 
ond, a concrete  study  by  American  delegates  of  conditions  as  they 
actually  are  in  European  countries;  third,  continued  popular  dis- 
cussion, newspaper  and  magazine  articles,  and  general  consideration 
of  both  foreign  conditions  and  American  needs;  and,  fourth,  the 
prescription — the  necessary  laws.  I doubt  very  much  whether  it 
is  desirable  to  attempt  any  new  laws  on  the  subject  for  at  least  a 
year  or  two.  It  doubtless  is  perfectly  proper  to  mtroduce  bills 
havmg  m mind  bringing  out  discussion  and  encouraging  people  to 
submit  arguments  for  and  against  various  policies,  but  I would 
strongly  advocate  that  few  laws  be  actually  passed  and  approved 
for  at  least  one  or  two  years.  Knowing  that  the  European  ground 
is  bemg  thoroughly  studied  at  the  present  time  (I,  myself,  have 
assembled  an  immense  quantity  of  literature  on  the  subject)  and, 
believing  that  we  need  careful  study  of  conditions  at  home  before 
the  commission  of  the  Southern  Commercial  Congress  sails,  I have 
compiled  the  following  paper,  believing  that  it  may  make  people 
study  the  institutions  at  home  and  think  of  the  needs  at  home  as 
they  examine  European  conditions. 

THE  SITUATION  IN  AMERICA. 

In  order  that  we  may  see  the  problem  in  its  simplest  form,  let 
us  examine  some  of  the  facts  concerning  the  United  States  as  a 
whole  and  one  representative  State.  Probably  no  better  State 
could  be  selected  than  Wisconsin,  and,  therefore,  I shall  present 
in  each  case  figures  for  the  United  States  and  for  this  State.  I 
believe  that  there  are  many  special  reasons  why  Wisconsin  should 
be  chosen  to  compare  with  conditions  in  the  United  States  as  a 
whole,  and  they  will  be  brought  out  in  the  following  discussion.  Facts 
similar  to  those  given  for  Wisconsin  can  be  compiled  for  any  State 
in  the  Union  and  most  of  them  are  available  for  any  county  in  the 
United  States,  if  desired  by  any  person. 


6 RURAL  CREDIT  OR  FARM  FINANCE  IN  THE  UNITED  STATES. 

BASES  FOR  RURAL  CREDIT. 

The  best  bases  for  rural  credit  are  the  different  classes  of  farm 
property  (land,  buildings,  implements  and  machinery,  and  live 
stock).  These,  under  the  farmers’  directions,  annually  result  in 
the  production  of  valuable  goods  (especially  food,  clothing,  and 
beverages)  in  abundance.  These  products  are  also  good  bases  of 
credit.  So,  too,  are  the  prospects”  of  the  farm  as  a going,  con- 
cern,” and  so,  too,  are  the  farmers’  good  names. 

Before  passing  to  a study  of  the  value  of  farm  products,  let  us 
briefly  examine  the  latest  reports  (1910)  showing  the  amount  of  farm 
property  and  its  value.  The  following  table  carries  for  the  United 
States  and  for  Wisconsin  the  items  which  seem  most  necessary  for  a 
true  interpretation  of  this  subject: 


Number,  area,  and  value  of  farms 

United  States, 
1910  (Apr.  15). 

Wisconsin,  1910 
(Apr.  15). 

Population 

91,972,266 

2,333,860 

Urban  population  i 

42,623,383 

49,348,883 

1,004,320 

Rural  population  2 

1,329,540 

Number  of  all  farms 

6,361,502 

177, 127 
35,363,840 
21,060,066 
11,907,606 
118.9 

Approximate  land  area acres.. 

Land  in  farms 1 do 

Improved  land  in  farms do 

Average  acreage  per  farm 

1,903,289, 600 
878,798,325 
478,451,750 
138.1 

Average  improved  acreage  per  farm 

75.2 

67.2 

Per  cent  of  total  land  area  in  farms 

46.2 

59.6 

Per  cent  of  land  in  farms  improved 

54. 4 

56.5 

Per  cent  of  total  land  area  improved 

25.1 

33.7 

Value  of  farm  property,  total 

$40,991,449,090 

$1,413,118,785 

Land 

28, 475, 674, 169 
6,325,451,528 
1,265,149, 783 
4,925,173,610 

911,938,261 
289,694,462 
52, 956, 579 
158,529,483 

Buildings 

Implements  and  macbinery 

Live  stock 

Average  value  per  farm,  all  farm  property 

$6, 444 

$7,978 

Land 

4, 476 
994 

5, 148 
1,636 
299 

Buildings 

Implements  and  macbinery 

199 

Live  stock 

774 

895 

Average  value  of  farm  property  per  acre  of  land  in  farms,  all  farm 
property 

$46. 64 

$67. 10 

Land 

32.40 

43.30 

Buildings 

7.20 

13.76 

implements  and  macbinery 

1.44 

2.51 

Live  stock 

5. 60 

7.53 

1 Population  of  incorporated  places  having,  in  1910,  2,500  or  more  inhabitants. 

2 Total,  exclusive  of  urban.  (See  note  1.) 


Having  before  us  the  principal  facts  concerning  farm  property,  let 
us  now  turn  briefly  to  the  value  of  the  farm  products  referred  to. 
The  following  table  shows  for  the  United  States  and  for  Wisconsin 
the  gross  value  of  farm  products  for  the  year  1909,  as  presented  by  the 
Thirteenth  Decennial  Census.  It  also  shows  the  various  classes 
which  go  to  make  up  the  totals.  It  should  be  understood,  of  course, 
that  there  is  a large  amount  of  duplication  between  the  crops  and  live- 
stock products,  in  view  of  the  fact  that  large  amounts  of  the  crops 
are  fed  to  the  live  stock,  and  therefore  appear  in  a more  advanced 
form  under  live-stock  products  and  live  stock  sold  and  slaughtered. 
It  is  not  necessary,  however,  in  a brief  study  of  this  sort  to  try  to 
arrive  at  the  net  value  of  all  farm  products. 


EUEAL  CEEDIT  OE  FAEM  FINANCE  IN  THE  UNITED  STATES.  7 


Gross  value  of  all  farm  'products  of  the  United  States  and  for  the  State  of  Wisconsin,  1909. 


United  States. 

Wisconsin. 

Amount. 

Per  cent 
of  total. 

Amount. 

Per  cent 
of  total. 

Gross  products  of  the  farm 

All  crops 

$8,498,311,413 

100. 00 

$267, 716, 403 

100. 00 

5,487, 161,223 
65,472,328 
901,597 
306,688,960 
202, 506,272 
5,992,083 
596,413,463 
1,833,175,487 

64.60 
.80 

(U 

3.60 
2.40 
.10 
7.  00 

21.60 

148,359,216 
1,267,285 
1,082 
9, 526, 784 
4,653,649 
235, 723 
53,868,028 
49,804, 636 

55.40 

.50 

0)  K 

3.  60 
1.70 
■ .10 
20. 10 
18.60 

Wool 

Mohair 

Eggs 

Poultry 

Honey  and  wax 

Dairy  products 

Animals  sold  and  slaughtered 

’ Less  than  one-tenth  of  1 per  cent. 


INCREASE  THE  FARM  AREA. 

I find  by  reference  to  the  first  table  given  above  that  the  approxi- 
mate land  area  of  the  United  States  is  1,903,289,600  acres;  for 
Wisconsin  it  is  35,363,840  acres.  Of  these  areas  878,798,325  acres, 
or  only  46.2  per  cent,  of  the  land  area  of  the  United  States  is  in 
farms  and  21,060,066  acres,  or  only  59.6  per  cnnt,  of  the  total  land 
area  of  Wisconsin  is  in  farms.  Wisconsin  is  considerably  ahead  of 
the  United  States  in  this  respect,  but  still  offers  great  possibilities. 

It  is  true  that  a considerable  part  of  the  land  not  reported  as  in 
farms  is  occupied  by  cities,  towns,  and  villages,  railroad  rights  of 
way,  roads,  etc.,  or  is  owned  by  mining  corporations,  but  probably 
a much  larger  part  is  held  by  the  United  States,  the  different  States, 
corporations,  individual  speculators,  or  others  than  farmers.  At 
least,  it  is  not  at  the  present  time  being  used  for  farming  purposes. 
Much  of  the  land  not  now  in  farms  would  be  occupied  and  farmed 
if  institutions  were  available  which  would  furnish  prospective  farm- 
ers with  money  or  credit.  It  should  be  made  possible  for  them  to 
occupy  and  operate  this  land.  Assuming  that  the  institutions  exist, 
prospective  farmers  shoidd  be  taught  to  use  them  to  the  utmost. 

One  of  the  first  problems  to  be  solved,  therefore,  is  how  to  provide 
a system  by  which  laborers  and  tenants  or  other  interested  parties 
may  become  owners  and  operators  of  the  land  not  now  in  farms.  In 
the  past  the  National  Government  has  interested  itself  in  this  prob- 
lem and  has  given  away  large  tracts  of  land.  It  is  still  interested. 
Many  States  which  still  own  millions  of  acres  of  land  are  interested. 
Several  States,  so  far  as  disposing  of  State  land  is  concerned,  now 
have  very  satisfactory  policies.  Probably  none  has  a better  system 
in  this  respect  than  Minnesota.  To  any  who  are  interested  in  the 
policies  of  that  State,  I will  refer  to  an  article  which  appeared  in  the 
American  Economical  Review  (Vol.  II,  No. '2,  June,  1912),  entitled 
^‘Marketing  of  agricultural  land  in  Minnesota  and  North  Dakota.’’ 
Railroad  companies  are  interested.  So,  too,  are  many  individuals. 
The  biggest  problem  here  is  to  work  out  a system  by  which  })OQr 
men  may  purchase  land  not  now  in  farms,  may  develop  it,  and  oper- 
ate it.  Each  State  should  carefully  list  and  describe  all  such  land 
in  a public  document  and  should  also  work  out  a system  whereby  it 
might  be  brought  into  farms. 


8 RURAL  CREDIT  OR  FARM  FINANCE  IN  THE  UNITED  STATES. 

INCREASE  THE  IMPROVED  LAND  AREA. 

Probably  more  important  even  than  the  problem  of  bringing  more 
land  into  farms  is  the  problem  confronting  farmers  who  already 
o})erate  farms  whether  as  owners,  tenants,  or  managers.  It  is  really 
remarkable  that  only  478,451,750  acres,  or  54.4  per  cent  of  the  land 
in  farms  in  the  United  States  is  reported  to  be  improved  by  the 
farmers  who  operate  them,  while  in  Wisconsin  only  11,907,606  acres, 
or  56.5  per  cent  of  the  farm  land  in  that  State  is  improved  at  the 
present  time.  In  this  respect  it  will  be  observed  Wisconsin  is  slightly 
ahead  of  the  country  as  a whole.  But  the  farmers  of  Wisconsin, 
as  well  as  of  all  the  other  States,  still  need  literally  millions  of  dollars 
in  money  or  credit  in  order  that  they  may  improve  the  land  which 
is  in  their  farms,  but  which  is  now  undeveloped.  It  is  true  that 
some  progress  is  being  made,  but  the  movement  is  very  slow.  During 
the  last  10  years  there  was  an  increase  of  63,953,263  acres,  or  15.4 
per  cent  in  the  amount  of  improved  land  in  farms  in  the  United  States 
as  a whole.  During  the  same  time  the  population  of  all  cities  in  the 
United  States  over  2,500  in  size  increased  almost  35  per  cent.  The 
increase  in  the  acreage  of  improved  land  in  farms  in  Wisconsin  was 
only  660,634  acres,  or  5.9  per  cent.  It  certainly  can  not  be  denied 
that  it  would  be  possible,  if  proper  steps  were  taken,  to  improve  many 
times  as  large  an  area  in  the  same  length  of  time.  Land  must  be 
drained;  timber  and  stumps  must  be  cleared  from  land  which  could 
be  used  to  better  advantage  for  agricultural  purposes;  brush  and 
stones  must  be  removed ; land  must  be  irrigated ; and  in  various  other 
ways  unimproved  land  now  in  farms  could  be  brought  into  use. 
Implements  and  machinery  with  which  to  improve  the  land  must  be 
purchased,  and  power  for  this  purpose  must  be  supplied.  The  new 
land  must  also  be  equipped  in  order  that  it  may  be  cultivated.  The 
demand,  therefore,  is  for  labor,  power,  and  equipment  with  which  to 
improve  and  develop  the  land,  and  also  labor,  power,  and  equipment, 
with  which  to  operate  the  land  after  it  has  been  improved. 

THE  SECURITY. 

But  you  ask,  ^'What  security  can  be  given?”  The  reply  is,  ‘‘The 
farm  property  itself  can  be  pledged  to  advantage.”  If  the  farm  prop- 
erty could  be  pledged  to  advantage  in  time  of  need  (1 ) without  months 
of  delay,  (2)  without  great  cost  for  negotiating  loans,  (3)  without 
having  to  pay  such  high  rates  of  interest,  and  (4)  with  the  privilege 
of  paying  off  the  debt  at  the  first  opportunity  it  w^ould  be  of  great 
advantage  to  the  people  of  the  United  States  as  a whole. 

According  to  the  latest  census  reports,  the  value  of  farm  land 
(including  farm  buildings)  was  $34,801,125,697  for  the  United  States 
in  1910,  while  the  value  of  the  same  class  of  property  in  Wisconsin 
was  $1,201,632,723.  The  average  value  of  this  class  of  property,  per 
acre  of  land  in  farms,  was  $39.60  for  the  United  States  as  a w^hole  and 
$57.06  for  the  State  of  Wisconsin,  while  the  average  size  of  farms  w^as 
138.1  acres  for  the  United  States  as  a whole  and  118.9  acres  for  Wis- 
consin. Thus  the  average  value  per  farm  w^as  $5,471  for  the  United 
States  as  a whole,  as  compared  to  $6,784  for  Wisconsin. 


KURAL  CREDIT  OR  FARM  FIXANCE  IX  THE  UNITED  STATES.  9 


FARMS  OPERATED  BY  OWNERS,  MANAGERS,  AND  TENANTS. 

But  you  may  say  that  the  farm  property  in  the  United  States  (which 
would  include  Wisconsin  farm  property)  is  already  pledged  to  some 
extent.  It  is  interesting  to  note  how  comparatiyely  small  this  is.  In 
1910  there  were  in  the  United  States  3,948,722  farms  owned  by  the 
operators  who  liyed  upon  them.  At  the  same  time  the  numher  in 
the  same  class  in  Wisconsin  was  151 ,022.  There  were  2,354,676  farms 
operated  by  tenants  (including  croppers  and  all  other  classes  of  renter) 
in  the  United  States  and  24,654  in  .Wisconsin.  In  the  United  States 
as  a whole  58,104  farms  were  operated  by  hired  managers,  while  in 
Wisconsin  1,451  were  in  this  class.  Thus  for  the  United  States  as  a 
whole  62.1  per  cent  of  all  farms  were  operated  by  their  owners,  whereas 
in  Wisconsin  85.3  per  cent  were  operated  by  farmers  who  owned  their 
land.  These  farms  operated  by  their  owners  might  easily  be  offered 
as  security  if  there  was  any  adyantage  in  doing  so.  Although  62.1 
per  cent  of  all  farms  in  the  United  States  were  occupied  by  their 
owners,  they  occupied  68.1  per  cent  of  all  land  in  farms,  64.8  per  cent 
of  the  improved  land  in  farms,  and  64.3  per  cent  of  the  yalue  of  land 
and  buildings.  Referring  now  to  Wisconsin,  we  find  that  whereas  85.3 
per  cent  of  all  farms  were  occupied  by  their  owners,  they  had  charge 
of  82.5  per  cent  of  all  land  in  farms,  80.8  per  cent  of  the  improyed 
land  in  farms,  and  79.3  per  cent  of  the  yalue  of  land  and  buildings. 
This  should  giye  us  some  idea  of  the  extent  to  which  farm  operators 
could  pledge  the  farms  in  their  charge,  both  in  the  United  States  and 
the  State  of  Wisconsin  as  a representative  State.  Even  the  farms 
operated  by  tenants  might  be  pledged  by  their  owners,  especially  if 
the  owners  lived  comparatively  close  to  the  farms  and  were  able  to 
supervise  the  improvements. 

PRESENT  INDEBTEDNESS  AMONG  OWNERS. 

It  is  worth  while  to  inquire  at  this  point  to  what  extent  farm  owners 
operating  their  own  farms  ha\  e real  estate  mortgages  at  the  present 
time.  The  latest  reports  of  the  Census  Bureau  show  that  2,621,283, 
or  66.4  per  cent  of  all  resident  farm  owners  in  the  United  wStatcs  were 
free  from  mortgage  indebtedness  in  1910.  It  also  shows  that  72,941, 
or  48.6  per  cent  of  all  resident  farm  owners  in  Wisconsin  were  free 
from  rnortgage  debt.  The  number  with  mortgage  indebtedness  in 
the  United  States  was,  therefore,  1,  327,439,  or  33.6  per  cent,  whereas 
the  number  in  Wisconsin  was  77,129,  or  51.4  per  cent.  (A  small 
number  of  farmers  were  unwhling  or  unable  to  state  whether  the 
farm  was  mortgaged,  or  to  the  amount  of  the  indebtedness.)  It 
should  be  noted  that  no  information  is  at  hand  showing  the  extent 
of  the  mortgage  indebtedness  of  farms  operated  by  tenants  and  man- 
agers. It  is  clear,  howe\  er,  from  the  ilgures  given  that  approxi- 
mately one-half  of  the  Wisconsin  farmers  who  own  their  farms  have 
mortgage  indebtedness,  whereas  approximately  one-third  of  the 
farmers  in  the  United  States  as  a whole  who  are  operating  their  own 
farms  have  mortgage  indebtedness. 

There  are  those  who  will  at  once  cry  out  that  farmers  in  Wisconsin 
are  in  a bad  financial  condition,  since  a larger  jirojiortion  of  the  farmers 
in  the  State  ha  /e  indebtedness  than  is  found  in  the  United  States 
generally.  The  very  opposite  is  probably  true.  Wisconsin  prob- 
ably stands  nearly  at  the  top,  for,  while  only  62.1  per  cent  of  all 


10  KUEAL  CREDIT  OR  FARM  FINANCE  IN  THE  UNITED  STATES. 

farmers  in  the  United  States  own  their  farms,  85.3  per  cent  of  Wis- 
consin farmers  own  their  own  farms.  Farmers  in  Wisconsin  who 
have  mortgage  indebtedness  frequently  are  owners  with  mortgages 
because  they  prefer  this  to  tenancy. 

Again  there  are  those  who  are  prone  to  believe  that  farmers  who 
have  mortgages  borrow  money  in  order  to  buy  more  land.  An  exam- 
ination of  all  reports  from  Wisconsin  show  that  the  69,407  farmers 
who  own  their  entire  farms  and  have  no  mortgage  indebtedness  have 
7,718,094  acres  of  farm  land,  or  111.2  acres  per  farm.  Those  who 
own  their  farms  but  have  mortgage  indebtedness  number  71,121,  and 
have  8,003,831  acres,  or  112.5  acres  per  farm.  It  must  be  clear, 
therefore,  that  the  second  accusation  is  not  true.  In  Wisconsin,  at 
least,  land  ownership  with  mortgage  indebtedness  is  a substitute  for 
tenancy.  There  is  room  for  more  of  this  particular  kind  of  substi- 
tute. It  should  be  noted  in  passing  that  whereas  tenancy  inci eased 
16.2  per  cent  in  the  United  States  as  a whole  during  the  last  10  yeais, 
in  Wisconsin  it  was  only  7.2  per  cent.  Also,  whereas  only  36.1  per  cent 
of  all  farmers  in  Wisconsin  are  owners  free  from  mortgage,^  39.2 
per  cent  of  all  farmers  in  the  United  States  are;  so  that  it  is  pei- 
fectly  clear  that  the  owners  with  mortgage  indebtedness  are  substi- 
tutes for  tenancy.  The  following  table  shows  the  situation  in  WTs- 
consin : 

Mortgage  indebtedness  in  Wisconsin. 


Item. 

Owners  free. 

Owners  mort- 
gaged. 

Number  of  farms 

69,407 
7, 718, 094 
4,254,707 
S317,526,350 
$112,173,141 
$19,819,312 
111.2 
61.3 
$4,575 
$1,616 
$286 
$4.  66 

71,121 
8,003,831 
4,443,594 
$327, 653, 653 
$109,338,662 
$20, 974,915 
112.5 
62.5 
84,607 
$1,537 
$295 
$4.  72 

Land  in  farms acres. . 

Improved  land  in  farms do 

Value  of  land 

Value  of  buildings . . . 

Value  of  implements  and  machinery '. 

Average  acreage  per  farm 

Average  improved  acres  per  farm 

Average  value  of  land  per  farm 

Average  value  of  buildings  per  farm 

Average  value  of  implements  and  machinery  ner  farm 

Average  value  of  implements  and  machinery  per  acre  of  improved  land.. 

Aside  from  borrowing  money  to  help  to  pay  for  a farm,  and  thus 
avoid  tenancy,  farmers  generally  borrow  to  improve  more  land,  to 
build  better  buildings,  and  to  better  equip  their  farms.  The  follow- 
ing statement  shows  the  situation  for  the  whole  United  States: 

Mortgage  indehtdeness.  United  States. 


Item. 

Owners  free. 

Owners  mort- 
gaged. 

Number  of  farms 

2,295,277 

311,219,206 

147,456,032 

$8,236,155,223 

$2,507,823,468 

$444,410,437 

135.6 

64.2 

$3,588 

$1,093 

$194 

$3.01 

1,059,620 
153, 704, 109 
86,352,565 
$5,205,679,466 
$1,360, 980,  &59 
$287,441,317 
145. 1 
81.5 
$4,913 
81,284 
$271 
$3.33 

Land  in  farms acres.. 

Improved  land  in  farms do 

Value  of  land 

Value  of  buildings 

Value  of  implements  and  machinery 

Average  acres  per  farm ! 

Average  improved  acres  per  farm 

.Vverage  value  of  land  per  farm 

Average  value  of  buildings  per  farm 

Average  value  of  implements  and  machinery  per  farm 

Average  value  of  implements  and  machinery  per  acre  of  improved  land . . 

1 Those  who  own  their  entire  farm  and  have  no  mortgage  indebtedness. 


KURAL  CREDIT  OR  FARM  FINANCE  IN  THE  UNITED  STATES.  11 

It  should  be  noted  that  for  all  farmers  who  own  their  farms  and 
have  no  mortgage  indebtedness,  the  average  acreage  of  improved  land 
is  64.2  acres,  while  for  all  farms  operated  by  their  owners  who  have 
indebtedness  the  average  is  81.5  acres  of  improved  land,  or  17.3  acres 
more  per  farm.  Clearly  mortgage  indebtedness  seems  to  have  been  a 
factor.  It  may  be  said  at  once  that  the  farms  of  owners  who  have 
mortgages  are  also  larger,  but  please  note  that  the  farms  have  on  the 
average  only  7 per  cent  more  land,  but  27  per  cent  more  improved 
land.  Further  than  this,  the  investment  in  implements  and  machin- 
ery for  owners  with  mortgage  indebtedness  is  $0.32  or  about  10  per 
cent  greater  per  acre  of  improved  land  than  for  owners  free  from 
mortgage.  Again  mortgage  indebtedness  seems  to  have  been  ad- 
vantageous. Still  another  point  may  be  mentioned.  The  average 
value  of  buildings  for  all  farms  in  the  United  States  operated  by  their 
owners  without  mortgage  indebtedness  is  $1,093,  wliile  the  average 
for  farmers  with  mortgage  is  $1,284,  or  $191  more  per  farm.  It 
would  seem  that  these  farmers  were  really  leaders. 

The  question  naturally  arises  at  once  as  to  the  extent  to  which 
those  who  have  debt  have  mortgaged  their  farms.  The  latest 
reports  (1910)  show  that  the  average  value  of  land  and  buildings  per 
farm  for  all  ifarms  with  mortgage  indebtedness  was  $6,289  for  the 
United  States  as  a whole  and  $6,160  for  the  State  of  Wisconsin.  The 
average  amount  of  the  debt  was  $1,715  for  the  United  States  as  a 
whole,  and  $2,116  for  the  State  of  Wisconsin.  In  other  words,  the 
ratio  of  debt  to  value  of  the  property  mortgaged  was  27.3  per  cent  for 
the  United  States  as  a whole,  and  34.3  per  cent  for  Wisconsin.  From 
these  figures  it  is  clear  that  at  the  present  time  not  only  does  a larger 
percentage  of  the  resident  farm  owners  in  Wisconsin  have  mortgage 
indebtedness  than  the  average  for  the  United  States  as  a whole,  but, 
likewise,  the  amount  of  debt  per  farm  is  greater  for  Wisconsin  than 
the  average  for  the  United  States  as  a whole,  and  the  ratio  of  debt 
to  value  is  considerably  higher. 

BETTER  TITLES. 

The  advantages  of  a good  mortgage  system  are  many,  and  the  hrst 
demand  is  for  an  improved  land-mortgage  system.  If  fp.rmers  could 
secure  smaller  amounts  of  money  for  shorter  periods  of  time  at  lower 
rates  of  interest,  with  land  (including  buildings)  as  security,  not  only 
would  tenancy  be  reduced  but  farmers  would  more  rapidly  drain  the 
wet  places,  remove  stumps,  carry  away  the  stones,  clear  the  brush 
away,  and  bring  into  bearing  much  of  the  land  now  in  farms  but  un- 
improved. This  is  really  the  first  pressing  problem.  But  lov/er  rates 
of  interest  can  not  be  expected  until  land  titles  have  been  perfected 
and  land  surveys  have  definitely  established  absolute  boundaries. 
In  sections  of  the  country  where  land  titles  have  been  thoroughly 
established  and  where  there  are  no  further  disputes  concerning 
boundaries,  where  the  abstracts  of  titles  have  been  brought  up  to 
date  and  are  accepted  by  land  mortgage  companies,  savings  institu- 
j tions,  and  lenders  generally,  farmers  are  able  to  borrow  money  at  5 
I or  6 per  cent  at  the  present  time. 

It  will,  therefore,  be  necessary,  first,  to  thoroughly  establish 
present  titles  and  boundaries.  This  can  be  done  best  by  passing 
laws  in  the  several  States  providing  for  a modern  or  twentieth  cen- 


12  RUEAL  CREDIT  OR  FARM  FINANCE  IN  THE  UNITED  STATES. 

tury  method  of  land  title  registration.  I suggest  a system  modeled 
after  the  Torrens  system,  which  has  been  tried  and  tested  for  many 
decades  in  the  various  Australian  and  Canadian  Provinces  and  dif- 
ferent European  countries,  and  to  some  extent  by  American  States, 
and  which  has  been  accepted  by  the  National  Government  for  the 
Philippine  Islands.  As  a result  of  the  first  step,  lower  rates  of 
interest  would  be  secured,  less  time  would  be  wasted  looking  up 
titles  and  verifying  abstracts,  and  less  expense  would  be  incurred  in 
negotiating  loans.  Here,  then,  is  a saving  in  both  time  and  money. 

• 

LAND  MORTGAGE  ASSOCIATIONS. 

But  it  is  even  more  important  that  the  farmers  be  placed  in  a 
position  so  that  they  may  borrow  smaller  amounts  of  money  for 
shorter  periods  of  time  with  real  estate  as  security.  The  mortgage 
system  is  used  almost  entirely  by  young  farmers  who  wish  to  buy 
their  first  piece  of  land  and  have  only  a small  amount  of  money 
with  which  to  make  first  payment,  or  by  established  farmers  who 
desire  to  buy  more  land,  improve  more  land,  build  more  buildings, 
or  better  equip  their  farms.  This  should  be  encouraged  and  the 
system  improved  and  extended. 

In  order  to  secure  smaller  amounts  of  money  for  shorter  periods 
of  time,  for  these  purposes,  it  may  be  advantageous  for  farmers  to 
form  land  mortgage  associations.  Companies  composed  of  people 
who  have  money  to  lend,  or  who  could  locate  those  with  money  to 
lend,  would  immediately  be  formed  to  supply  the  new  demand, 
if  new  institutions  of  this  kind  are  necessary.  It  has  not  yet  been 
clearly  shown  that  any  new  organizations  for  this  purpose  are  neces- 
sary in  this  country.  More  study  and  investigation  is  necessary. 

I have  not  gone  exhaustively  into  this  subject,  but  find  after  a 
hasty  examination  of  various  reports  that  there  are  in  the  United 
States  (according  to  the  Report  of  the  Comptroller  of  the  Currency, 
1911)  24,392  institutions  with  a regular  banking  business  of  one 
kind  or  another.  There  are  7,277  national  banks,  12,864  State 
banks,  635  mutual  savings  banks,  1,249  stock  savings  banks,  1,251 
loan  and  trust  companies,  and  1,116  private  banks.  In  other  words, 
there  was  one  banking  institution  for  every  4,000  persons  in  the 
United  States. 

Turning  now  to  Senate  Document  No.  1003,  Sixty-second  Con- 
gress, third  session,  page  6,  January  13,  1913,  I find  in  connection 
with  the  Money  Trust  inquiry  the  following  statement: 

The  figures  for  Germany  were  collected  by  equally  competent  authority,  yet  the 
most  painstaking  investigation  reveals  for  1907  only  490  banks  with  1,730  branches 
(not  including,  of  course,  the  municipal  and  State  savings  institutions  and  the  coop- 
erative credit  societies  which  perform  some  of  the  functions  of  the  banks). 

If  these  figures  show  the  total  number  of  banking  institutions 
aside  from  municipal  and  State  savings  banks  and  cooperative  credit 
societies,  Germany  has  only  about  one  institution  for  every  30,000 
persons,  compared  to  one  institution  in  the  United  States  for  every 
4,000  persons.  Clearly  most  of  the  institutions  in  Germany  must  be 
the  small  savings  institutions  and  cooperative  credit  societies  instead 
of  State  and  private  banks  and  small  national  banks.  After  adding 
the  number  of  all  cooperative  credit  societies,  including  those  in 


KURAL  CREDIT  OR  FARM  FINANCE  IN  THE  UNITED  STATES.  13 

country  districts  and  cities,  towns,  and  villages,  I find  that  there  is 
an  average  of  one  for  approximately  4,000  persons,  or  about  the  same 
as  the  average  in  the  United  States.  It  would  seem,  therefore,  that 
we  now  have  in  the  United  States  approximately  as  many  institu- 
tions per  capita  as  Germany  has  even  when  we  include  among  the 
German  institutions  all  of  the  rural  credit  societies  which  are  now 
being  so  carefully  investigated. 

The  same  general  conclusions  apply  to  France.  I need  not  go 
farther  than  this,  and  only  relate  these  few  facts  in  order  that  I may 
point  out  that  we  may  have  at  the  present  time  enough  institutions 
in  this  country  and  only  need  to  change  them  to  make  them  supply 
the  peculiar  needs  of  the  time. 

Upon  examination  of  the  conditions  under  which  institutions 
chartered  by  the  different  States  operate,  we  find  that,  generally 
speaking,  the  State  banking  laws  are  free  from  restrictions  that  would 
hamper  the  State  banks  and  trust  companies  in  extending  loans 
liberally  to  responsible  farmers  or  associations  of  farmers  with  real 
estate  as  security.  Certainly  these  institutions  would  be  in  a very 
good  position  to  deal  with  groups  of  farmers  if  they  were  organized 
into  land  mortgage  associations  and  if  titles  were  registered.  No 
State  denies  State  banks  this  privilege,  and  such  restrictions  as 
exist  upon  their  activities  are  generally  not  burdensome.  Restric- 
tion on  the  amount  of  real  estate  loans  exist  in  Michigan,  New  York, 
Ohio,  Pennsylvania,  South  Carolina,  Texas,  and  Wisconsin.  Restric- 
tions as  to  the  ratio  of  the  amount  of  loans  to  the  value  of  real  estate 
exist  in  Minnesota,  Ohio,  and  Texas.  Real  estate  loans  are  legally 
limited  to  first  liens  in  California,  North  Dakota,  Oklahoma,  Pennsyl- 
vania, and,  under  certain  qualifications,  in  New  York.  Similar 
restrictions  are  found  in  a few  States  in  the  real  estate  loans  of  trust 
companies.  (Cf.  Samuel  A.  Welden,  ^'Digest  of  State  banking  stat- 
utes,’’ Tables  A and  C;  Report  of  National  Monetary  Commission, 
S.  Doc.  353,  61st  Cong.) 

Before  leaving  this  discussion  of  the  activities  of  the  State  banks, 
it  will  be  worth  while  to  note  that  there  were  in  the  United  States 
(Report  of  the  Comptroller  of  the  Currency,  1911)  12,864  State  banks. 
The  total  resources  of  these  banks  was  reported  to  be  $3,747,786,000. 
This  is  an  average  of  $291,340  per  bank.  Of  the  total  resources  of 
these  State  banks,  the  comptroller’s  report  shows  that  $489,661,000, 
or  $38,000  per  bank,  or  13.1  per  cent  of  the  total  resources,  represents 
loans  secured  by  real  estate.  These  figures  are  given  merely  to  show 
that  State  banks  do  have  a considerable  part  of  their  resources  loaned 
with  real  estate  as  security.  But  it  is  impossible  to  show  how  much 
of  this  was  loaned  to  farmers  and  how  much  to  real  estate  owners 
living  in  cities.  It  is  sufficient  here,  however,  to  call  attention  to 
the  fact  that  almost  $500,000,000  were  loaned  with  real  estate  as 
security. 

Attention  should  also  be  called  to  the  fact  that  there  were,  accord- 
ing to  the  same  report,  1,116  private  banks  in  the  United  States, 
although  no  such  institutions  exist  in  some  States.  The  total 
resources  of  these  private  banks  was  reported  to  be  $182,824,000,  the 
average  per  bank  being  $163,820.  Private  banks  have  20.5  per  cent 
of  their  total  resources  loaned,  with  real  estate  as  security.  This  is  a 
larger  percentage  than  found  in  the  case  of  State  banks,  being  more 


14  RURAL  CREDIT  OR  FARM  FINANCE  IN  THE  UNITED  STATES. 

than  one-fifth  of  the  total  resources  of  all  of  these  institutions.  On 
the  other  hand,  private  banks  invest  less  in  bonds  and  other  similar 
securities,  and  also  keep  somewhat  less  of  cash  on  hand. 

Mention  should  also  be  made  here  of  the  fact  that  there  were  1,251 
loan  and  trust  companies.  The  total  resources  of  these  instiutions 
was  $4,665,111,000,  or  an  average  of  $3,729,000  per  bank.  These 
institutions  had  loaned  almost  $500,000,000,  or  10  per  cent  of  their 
total  resources,  with  real  estate  as  security.  Having  in  mind  the 
State  banks,  private  banks,  and  loan  and  trust  companies,  we  find 
that  $1,000,000,000  had  been  loaned,  with  real  estate  as  security. 

Let  s now  refer  to  the  activities  of  the  635  mutual  savings  banks, 
with  resources  valued  at  $3,762,402,000,  or  an  average  of  $5,925^000 
per  bank.  These  institutions  had  $1,602,647,000,  or  42.6  per  cent 
of  their  resources  loaned,  with  real  estate  as  security.  At  the  same 
time  there  were  1,249  stock  savings  banks,  with  resources  valued  at 
$889,912,000,  or  $712,500  per  bank.  These  institutions  had  loaned 
$361,260,000,  or  40.6  per  cent  of  their  resources,  with  real  estate  as 
security.  These  savings  banks,  therefore,  loaned  on  the  average 
more  than  two-fifths  of  all  of  their  resources,  with  real  estate  as 
security,  and  had  outstanding,  according  to  the  latest  report,  almost 
$2,000,000,000  in  this  class.  Study  should  be  made  of  the  real  estate 
loans  of  building  and  loan  associations,  insurance  companies,  and 
other  similar  organizations,  or  to  loans  by  individuals  directly  or 
through  brokers. 

In  addition  to  all  of  these,  attention  is  called  to  the  fact  that  a 
majority  of  all  national  banks  now  having  savings  departments,  and 
attention  should  be  called  to  the  fact  that  (Sept.  1,  1911)  out  of 
the  total  (7,301)  national  banks,  1,966  had  a capital  of  only  $25,000, 
and,  therefore,  presumably  were  located  in  towns  of  less  than  3,000 
inhabitants;  372  had  a capital  of  between  $25,000  and  $50,000,  and, 
therefore,  presumably  were  located  in  towns  of  less  than  6,000  inhab- 
itants. In  addition  to  these  banks  with  small  capital,  which 
amounted  to  almost  one  in  each  county  in  the  United  States,  although 
they  are  not  evenly  distributed,  there  were  2,297  national  banks  with 
a capital  of  between  $50,000  and  $100,000.  Except  for  banks  in 
towns  with  less  than  6,000  population,  the  law  as  amended  in  1900 
does  not  permit  any  national  bank  to  be  organized  with  a capital  of 
less  than  $100,000. 

It  has  been  suggested  many  times  recently  that  the  provisions  of 
the  national  banking  act  (R.  S.,  sec.  5137)  are  too  rigid  on  the  matter 
of  loans  on  real  estate  securities.  It  has  also  been  urged  that  the 
national  banks,  under  proper  regulations,  be  authorized  ‘To  establish 
savings  departments  and  to  lend  no  more  than  40  per  cent  of  their 
savings  deposits  upon  productive  real  estate,  such  loans  not  to  exceed 
50  per  cent  of  the  actual  value  of  the  property.’’  This  is  the  recom- 
mendation of  the  National  Monetary  Commission.  If  this  amend- 
ment were  adopted,  loans  might  be  made  for  short  ])eriods  for  small 
amounts  at  comparatively  low  rates  of  interest. 

I noted  above  that  a majority  of  the  national  banks  now  have 
savings  departments.  It  is,  therefore,  possible  at  the  present  time 
to  lend  to  some  extent  with  real  estate  as  security.  In  passing,  I 
wish  only  to  note  that  whereas  there  were  according  to  the  latest 
reports  7,277  national  banks,  with  their  resources  valued  at 
$10,383,050,000,  or  $1,427,000  per  bank,  only  $65,112,000,  or  six- 


EUKAL  CREDIT  OR  FARM  FINANCE  IN  THE  UNITED  STATES.  15 

tenths  of  1 per  cent  of  their  entire  resources  was  loaned  with  real 
estate  as  security.  It  is  perfectly  clear  that  if  national  banks  estab- 
lish savings  departments  more  generally,  and  if  they  were  permitted  to 
lend  40  per  cent  of  their  savings  deposits  upon  productive  real  estate, 
it  might  be  possible  for  these  institutions  to  take  care  of  many  of 
the  needs  which  we  have  been  considering.  It  is  not  my  purpose, 
however,  to  outline  in  detail  here  what  steps  are  necessary  to  finally 
solve  the  problem.  It  seems,  however,  that  there  probably  are 
enough  different  kinds  of  institutions  already  thoroughly  established 
in  this  country,  and  all  that  is  necessary  at  the  present  time  is  to 
make  slight  modifications  in  existing  regulations.  Farmers’  land- 
mortgage  associations  would  merely  bring  the  farmers  into  closer 
and  more  advantageous  touch  with  these  institutions.  Postal  sav- 
ings funds  and  various  State  funds  need  not  be  used  for  this  purpose, 
^but  should  be  preserved  for  other  purposes.  / 

ELIMINATE  THE  TENANT  SYSTEM.  ' 

There  are  in  the  United  States  2,354,676  farms  operated  by  tenants 
and  in  the  State  of  Wisconsin  24,654.  Tenant  farmers  shift  from 
farm  to  farm  and  are  generally  the  poorest  farmers  in  the  country. 
They  are  the  land  robbers  par  excellence.  Legislation  is  necessary 
in  order  that  a system  of  land  loans  may  be  evolved  by  which  tenants 
or  others  may  buy  farms  and  by, a process  of  amortization  gradually 
pay  for  them.  Many  model  laws  may  be  pointed  to,  especially  in 
England  and  other  European  countries.  The  postal  savings  funds 
*and  various  State  funds  might  be  brought  into  use  at  this  point. 
So,  too,  it  might  be  justifiable  for  the  National  or  State  Governments 
to  borrow  money  to  lend  for  the  purpose  of  keeping  the  tenant  system 
from  developing. 

LENGTHEN  LEASES. 

It  would  be  ridiculous  to  assume,  however,  that  in  this  country, 
with  all  nationalities,  with  great  numbers  of  negro  farmers,  and  with 
free  trade  in  land,  tenancy  could  be  quickly  and  easily  eliminated. 
Indeed,  hundreds  of  thousands  of  young  men  each  year  probably 
should  start  as  farm  laborers  or  tenants,  and  indeed  should  serve  an 
apprenticeship  and  gradually  become  owners  as  the  result  of  their 
own  efforts. 

No  government  should  lend  to  any  prospective  farmer  unless  he 
made  at  least  a small  cash  payment  and  had  had  a year  or  more  of 
farm  experience.  Large  numbers  of  young  men  would  be  unwilling 
to  purchase  land  under  a scheme  which  would  require  them  to  pay  for 
the  land  gradually  over  a period  of  10,  20,  or  more  years  by  a system 
of  amortization.  We  should  recognize  the  fact  that  different  men 
have  different  capacities  for  farming  as  for  other  things.  They  differ 
in  foresight,  ambition,  perseverance,  frugality,  and  other  qualities 
which  go  to  make  up  successful  business  men.  Some  farmers  would 
naturally  remain  tenants  longer  than  others,  even  with  equal  oppor- 
tunity and  under  a uniform  system  of  treatment.  But  we  must  con- 
serve the  natural  resources  of  the  country,  and,  therefore,  we  should 
establish  a system  which  will  make  it  possible  to  conserve  our  natural 
resources  and  at  the  same  time  allow  men  freedom  in  operating  their 
farms.  Inasmuch  as  rotation  of  crops  seems  best,  and  inasmuch  as 


16  RUEAL  CREDIT  OR  FARM  FIXAXCE  IX  THE  UXITED  STATES. 


diversified  agiieultiire  has  many  advantages  over  most  forms  of  s])e- 
eialization,  and,  fiiither,  inasmiicli  as  stability  and  permanency  is  far 
better  than  constant  changing  and  uncertainty  for  the  tenant  class, 
a system  of  leases  should  be  worked  out  by  which  owners  of  the  land 
inight  lease  to  tenants  for  i)eriods  of,  say,  five  years  or  longer.  Pro- 
vision should  be  made  by  which  tenants  would  be  compensated  for 
im]n‘ovements  and  betterments.  This  is  done  in  various  countries 
and  has  })roved  to  be  thoroughly  practical)le. 


COMMERCIAL  CREDIT  v.  MORTGAGES. 


Aside  from  (1)  establishing  a system  whereby  land  not  now  in 
farms  could  more  easily  be  secured  by  prospective  farmers,  and  where- 
by new  farms  might  be  established,  (2)  perfecting  titles  and  simplify- 
ing the  system  of  negotiating  loans,  (3)  modifying  the  laws  governing 
the  loaning  with  real  estate  as  security,  thus  making  possible  the 
development  of  much  land  now  unimproved  and  the  better  equipping 
of  farms,  (4)  creating  land-mortgage  associations  to  bring  farmers  into 
closer  touch  with  credit  institutions,  (5)  substituting  land  ownerships 
for  tenancy  wherever  possible  by  providing  for  long-time  loans  and  a 
system  of  amortization  for  those  who  desire  to  take  advantage  of  it, 
and  (6)  providing  for  longer  leases  where  necessary.  Farmers  need 
more  and  better  implements  and  machinery,  also  more  and  better 
power  with  which  to  cultivate  their  farms  and  carry  on  other  farm 
work.  They  also  need  to  increase  the  Ih^e-stock  equipment  on  farms 
in  order  that  the  supply  of  dahy  products,  poultry  and  eggs,  honey 
and  wax,  wool  and  mohair,  and  meats  of  the  different  kinds  may  keep 
up  with  the  increase  in  population,  and  they  need  to  improve  the  live 
stock  they  have.  They  must  weed  out  lazy  and  inefficient  animals 
and  substitute  productive  ones.  This  must  proceed  not  only  in  order 
to  supply  the  new  demands  for  live-stock  products,  but  also  in  order 
that  the  immense  outlay  for  commercial  fertilizers  may  be  reduced. 
The  farmers  as  a result  of  this  change  may  be  able  to  increase  again 
the  annual  yield  of  farm  crops,  and  again  make  the  supply  keep  pace 
with  the  increasing  demands. 

The  question  immediately  arises  as  to  whether  the  present  banking 
facilities  are  sufficient  to  supply  these  demands  or  needs  of  improved 
farm  practice  in  addition  to  those  considered  before.  Certainly  it 
must  be  admitted  that  at  the  present  time  the  needs  are  not  supplied. 
This  (1)  may  be  the  fault  of  the  farmers  or  (2)  it  may  be  fault  of  those 
in  charge  of  the  credit  institutions  which  now  exist,  or  (3)  it  may  be 
that  the  law  makers  are  to  blame  for  not  authorizing  the  necessary 
institutions.  Let  us  first  assume  that  the  necessary  institutions  now 
exist;  what  then?  To  be  ch  ’ ssponsi- 


bility  between  the  farmers 


gotten 


together  better.  Let  us  analyze  the  situation.  First  of  all  it  should 
be  noted  that  (aside  from  the  fact  that  national  banks  are  not  per- 
mitted to  make  loans  on  real  estate  security,  which  need  not  concern 
us  here)  there  is  no  restriction  in  the  national  banking  act  which  would 
interfere  with  loans  to  farmers  for  agricultural  purposey  ^Tersonal 
security  alone  is  legally  acceptable;  the  range  of  possible  collateral 
security  is  practically  unlimited;  and  there  is  no  limitation  fixed  by 
law  as  to  the  period  of  loans.  National  banks,  therefore,  have  a very 
free  hand  in  regard  to  farmers.”  (Cf.  ^‘Agricultural  credit  in  the 


RUEAL  CREDIT  OR  FARM  FINANCE  IN  THE  UNITED  STATES.  17 

United  States/’  by  Prof.  E.  W.  Kemmerer,  American  Economic 
Review,  Vol.  II,  No.  4 — December,  1912,  p.  853.) 

Referring  to  the  State  banks,  it  may  be  said  that  the  laws  governing 
them  are  free  from  restrictions,  with  a few  minor  qualifications  that 
would  not  hamper  either  the  State  banks  or  trust  companies  in 
extending  credit  liberally  to  responsible  farmers. 

It  would  seem,  therefore,  that  banking  facilities  are  available  if 
only  they  were  properly  and  extensively  used.  The  farmers  must 
learn  the  advantages  of  credit  as  a means  to  the  more  economic 
working  of  the  farm.  They  should  learn  about  the  advantages  from 
the  bankers;  the  agricultural  press  should  tell  them  of  its  impor- 
tance; and  so,  too,  should  the  agricultural  colleges  and  schools.  Of 
course,  farmers  should  understand  that  money  or  credit  should  be 
secured  onty  when  it  is  perfectly  clear  that  additional  capital  can  be 
used  to  advantage  in  some  productive  way,  but  it  is  certainly  true 
that  practically  every  farmer  in  the  United  States  could  use  some 
additional  capital  profitably  every  year  if  they  could  secure  small 
amounts  at  reasonable  rates  of  interest  without  having  to  go  to  too 
great  trouble  to  secure  it,  and  also  without  having  to  wait  too  long 
a time  when  the  money  or  credit  was  desired.  In  order  that  the 
movement  may  gain  headway,  farmers  should  learn  to  keep  careful 
accounts;  the  country  school  arithmetic  should  be  completely  reor- 
ganized and  should  contain  practical  problems  in  interest  and  par- 
tial payments;  country  boys  and  girls  should  learn  the  possibilities 
of  keeping  accounts  and  should  study  simple  banking  problems. 
Courses  in  farm  accounting  should  be  better  provided  for  in  extension 
departments  of  institutions;  country  teachers  should  be  prepared  to 
teach  the  country  boys  and  girls. 

It  should  be  explained  to  the  farmers  at  every  opportunity  that 
the  banks  of  this  country  are  open  to  them  as  to  other  business  men 
and  that  the  bulk  of  the  short-time  commercial  loans  in  this  country 
as  likewise  the  bulk  of  the  agricultural  loans  of  Europe,  are  made  on 
the  very  same  security  that  they  are  capable  of  giving;  i.  e.,  two- 
name  paper  of  honest,  industrious  business  men.  The  real  problem 
then,  it  seems  to  me,  is  to  determine  the  simplest  way  to  arrange 
among  farmers  the  best  forms  of  the  two-name  paper. 

At  the  same  time,  however,  the  bankers  of  this  country  should  be 
brought  to  realize  that  one  of  the  best  kinds  of  paper  in  the  world  is 
short-time  business  paper  bearing  the  names  of  two  responsible 
farmers.  The  bankers  should,  therefore,  advise  the  farmers  in  the 
same  friendly  way  as  they  advise  their  city  customers.  Farmers 
should  be  made  to  feel  that  productive  loans  to  them  are  not  in  the 
nature  of  favors  reluctantly  granted,  but  rather  in  the  nature  of  busi- 
ness propositions  as  })rofitable  to  the  bankers  as  to  the  farmers  and 
given  as  gladly  as  received. 

In  order  that  the  two  classes  may  get  together,  it  is  important 
that  some  system  should  be  worked  out  by  which  financial  ratings  of 
farmers  may  be  prepared  and  may  be  as  satisfactory  in  every  respect 
as  the  financial  ratings  of  other  business  men.  At  the  present  time 
mercantile  credit  agencies  do  not  rate  farmers  as  extensively  as  they 
do  other  business  men  of  like  capital.  Probably  the  real  reason  for 
this  is  that  it  is  too  expensive,  and  also  that  there  is  very  little  call 
S.  Doc.  5,  C3-Sp.  Sess. 2 


18  RURAL  CREDIT  OR  FARM  FINANCE  IN  THE  UNITED  STATES, 


for  the  ratings  of  individual  farmers,  while  there  are  many  incjuiries 
for  financial  re])orts  of  mercantile  establishments. 

Before  leaving  this  subject,  I think  it  worth  while  to  again  call 
attention  to  the  fact  that  there  are  7,277  national  hanks,  as  noted 
elsewhere  in  this  ])aj)er,  and  that  the  total  amount  of  their  loans  and 
de])osits  amounted  to  S5,610,8()(),()0().  In  order  that  we  may  better 
Understand  the  different  classes  of  security,  mention  might  he  made 
of  the  fact  that  only  $2,071 ,300, OOO  was  secured  by  stocks,  bonds, 
other  personal  securities,  or  real  estate  security,  and  of  this  amount 
$953,800,000  was  demand  ])aper,  secured  by  stocks,  bonds,  and  other 
personal  securities,  the  rest  of  it  being  time  ])aper. 

At  the  same  time  loans  and  discounts  amounting  to  $3,540,000,000 
w^ere  reported  to  he  made  with  one  or  more  individual  or  firm  names. 
Of  this  amount  $1,124,700,000  was  time  “single-name  paper (one 
person  or  firm)  without  any  other  security,  while  $1,885,100,000  was 
time  paper  with  “two  or  more  individual  or  firm  names.”  In  addi- 
tion to  these  two  classes,  loans  amounting  to  $529,700,000  were  re})- 
resented  by  demand  paper  with  one  or  more  individual  or  firm 
names.  I do  not  find  in  the  report  which  I have  been  (j noting  that 
this  demand  paper  has  been  divided  into  two  classes — “single-name 
paper”  and  “paper  with  two  or  more  names.” 

It  would  seem  that  farmers  should  find  it  ])ossihle,  especially  if 
they  were  organized,  to  borrow  whatever  was  necessary  for  })r()- 
ductive  })urposes. 

CREDIT  UNIONS. 

I believe  that  for  this  purpose  credit  unions  are  m'cessary.  They 
would  take  the  place  of  the  commercial  agencies,  but  would  go  much 
further.  They  would  not  in  any  way  conflict  with  the  })resent  bank- 
ing system.  Grou})s  of  from  io  to  100  farmers  could  form  credit 
unions.  They  could  pledge  the  farm  equipment  (the  im])lements 
and  machinery  and  live  stock)  now  on  their  farms,  the  ])rospect- 
ive  live-stock  products  and  growing  croj)s,  and,  in  genei-al,  the 
season’s  “prospects”  and  the  farmers’  good  names.  It  would  then 
doubtless  be  possible  for  farmers  to  secure  all  the  money  or  credit 
necessary  to  use  on  their  farms  as  “going  concerns.”  Whenever 
any  farmer  desired  money  or  credit  he  could  make  out  his  note.  As 
a second  signature  on  the  note  the  business  managers  or  chairman 
of  the  executive  committee  of  the  credit  union  would  sign  the  name 
of  the  organization  (with  his  name  as  official  re])resentative).  The 
officers  of  the  executive  committee  might,  of  course,  refuse  to  j)ledge 
the  credit  unions  as  a second  security  unless  the  money  desired  was 
for  productive  purposes,  and  also  might  refuse  to  sign  if  the  amount 
desired  exceeded  the  value  of  the  farmer’s  ])r()si)ects  and  his  ecpii])- 
ment  for  the  farm  year  over  which  the  debt  extended.  At  the  same 
time  the  local  hank  where  the  credit  union  and  all  its  mend)ers  did 
business  would  be  sure  that  money  or  credit  advanced  to  members 
was  safe.  It  is  quite  likely  that  this  credit  union  should  have  a small 
capital  and  members  should  purchase  shares.  This  ca])ital  should, 
it  seems  to  me,  bo  invested  in  the  ca])ital  stock  of  a local  bank  (State 
or  National)  or  trust  com])any,  and  the  farmers’  credit  unions  should 
have  members  on  the  board  of  directors,  and  might  even  control 
many  such  institutions  as  time  advanced.  This  would  eliminate  the 
nec(>ssity  for  establishing  new  banks  exce])1  in  s|)ecial  cases. 


RURAL  CREDIT  OR  FARM  FINANCE  IN  THE  UNITED  STATES.  19 

MUTUAL  INSURANCE. 

As  a further  precaution  and  security,  the  farmers  of  each  com- 
munity should  form  a mutual  insurance  company.  The  farm  build- 
ings of  all  members  of  credit  unions  or  of  land-mortgage  associations 
should  be  insured.  So,  too,  the  farm  equipment  (implements  and 
machinery)  and  live  stock  should  be  covered  by  the  ^ ^farmer’s  mutual’’ 
so  that  no  ‘^members”  may  suffer,  and  so  that  the  group”  may  not 
lose  as  second  security.  Even  crop  insurance  is  commencing  to  be 
better  understood.  A few  years  hence  it  may  be  possible  (with  the 
development  of  crop  insurance)  for  a group  of  farmers  to  furnish  bet- 
ter security  than  is  now  found  in  any  part  of  the  world. 

ELIMINATE  STORE  CREDIT. 

But  what  about  current  expenses  of  running  the  farm,  money  to 
buy  groceries  and  other  farm  supplies,  and  to  pay  the  blacksmith  and 
the  hired  laborer  to  assist  on  the  farm?  At  the  present  time  those 
who  have  a fair  surplus  or  balance  generally  pay  cash;  those  who 
have  considerable  property  and  knowledge  of  good  business  principles 
secure  the  necessary  credit  at  the  local  bank,  and  pay  cash  as  the 
season  advances;  those  who  have  neither  surplus  nor  are  able  to 
secure  satisfactory  treatment  at  local  banks  depend  upon  ^ ‘store 
credit”  almost  entirely.  This  is  the  last  or  lowest  and  the  most 
expensive  form  of  credit  and  it  is  to  be  discouraged.  But  how? 
First,  by  encouraging  diversified  agriculture  of  such  a nature  that 
there  will  be  some  income  each  month  to  take  care  of  curent  expenses. 
Rotation  of  crops;  increased  yields;  better  utilization  of  labor  and 
equipment;  and  better  conservation  of  soils  would  accompany  the 
first  advantage  aimed  at.  More  attention  and  emphasis  should  be 
given  in  our  various  educational  institutions  to  problems  of  farm 
management.  Second,  by  the  stablishment  of  the  cooperative  stores 
equipped  to  supply  the  demand  of  the  members.  Third,  by  securing 
a line  of  credit  at  the  bank  for  this  specific  ])urpose.  It  may  be  that 
the  credit  union  should  indorse  notes  of  members  in  order  that  they 
may  secure  money  or  credit  and  pay  cash  for  supplies.  In  this 
event  prices  charged  for  supplies  should  be  reduced.  The  local 
merchant  would  not  have  the  present  losses  due  to  poor  customers, 
and  they  in  turn  could  pay  cash  for  goods  purchased  and  thus  take 
advantage  of  discounts,  etc.  So,  too,  all  along  the  line  cash  would  be 
paid  (by  the  use  of  money  or  credit  instruments  such  as  checks  and 
drafts)  and  bad  debts  and  losses  would  be  less  frequent  while  dis- 
counts for  cash  would  be  secured.  With  cooperative  stores  and  the 
puchase  of  supplies  in  large  quantities,  further  discounts  would  be  in 
order  and  transportation  charges  would  be  reduced. 

Above  all  things  let  there  be  study  for  a few  months  or  even  a year 
or  two  both  at  home  and  abroad.  We  have  needed  these  changes 
more  or  less  for  half  a century  and  now  that  serious  study  has  begun 
we  should  make  a thorough  job  of  it.  What  then  is  the  program? 

RECOMMENDATIONS. 

First.  Establish  a system  whereby  new  farms  may  be  created  and 
more  land  may  be  brought  into  farms.  I^and  for  sale  or  available 
for  settlement  should  be  listed  and  described  by  the  State,  so  that 


20  RURAL  CREDIT  OR  FARM  FINANCE  IN  THE  UNITED  STATES. 

prospective  farmers  might  become  acquainted  with  all  of  the  pos- 
sibilities. 

Second.  Improve,  clear  up,  and  insure  land  titles,  and  fix  bounda- 
ries so  that  lenders  and  borrowers,  buyers  and  sellers,  may  save  time 
and  money,  and  that  worry  and  risk  may  be  eliminated.  The  Tor- 
rens system  of  land-title  registration,  with  such  changes  as  may  be 
necessary  to  serve  local  needs,  now  bears  the  stamp  of  approval  of 
the  most  progressive  countries  of  the  known  civilized  world. 

Third.  Authorize  the  formation  of  land-mortgage  associations  for 
farmers  and  outline  scope  of  activities. 

Fourth.  Amend  State  and  National  laws  in  such  a way  as  to  make 
it  possible  for  State  and  National  banks  and  trust  companies  to  han- 
dle the  class  of  securities  which  farmers  are  best  able  to  furnish. 
This  would  make  it  easier  for  young  and  ambitious  farmers  to  pur- 
chase farms  and  advance  from  tenancy  to  land  ownership.  It  would 
make  it  easier  to  improve  land  now  in  farms  but  unimproved.  It 
would  make  it  possible  to  better  equip  and  develop  the  farms  in 
every  way. 

Fifth.  Establish  a system  by  which  farmers  may  become  owners 
of  land  by  a series  of  payments  after  the  amortization  scheme  so  well 
known.  State  funds  of  various  kinds  (such  as  educational,  insurance, 
etc.)  might  be  used  for  this  purpose. 

Sixth.  Improve  the  leasing  system,  so  that  tenants  may  become 
more  permanent  in  their  communities  and  may  accumulate  enough 
to  make  first  payment  and  eventually  become  owners.  Improved 
system  of  agriculture  would  result,  yields  would  increase  the  re- 
sources would  be  preserved,  and  both  owners  and  tenants,  as  well 
as  society,  would  be  more  justly  treated.  Long  leases,  with  com- 
parison to  tenants  for  improvements  and  betterments,  are  necessaiy. 

Seventh.  Keform  the  courses  and  methods  of  teaching  arithmetic 
in  country  schools  and  show  farm  boys  and  girls  the  possibilities  of 
farm  accounts  and  the  first  principles  of  banking. 

Eighth.  Perfect  the  system  of  rural  commercial  credit  by  author- 
izing the  formations  of  credit  unions  and  prescribing  their  peculiar 
field  in  this  country. 

Ninth.  Extend  insurance  in  agriculture  as  rapidly  as  possible  in 
order  that  all  may  bear  the  burden  of  unforeseen  happenings  more 
nearly  equal. 

Tenth.  Eliminate  as  rapidly  as  possible  the  present  store  credit 
system  by  the  establishment  of  the  cooperative  store  by  a reorgani- 
zation of  farm  practice  and  the  establishment  of  a more  regular 
farm  income  and  by  use  of  the  credit  unions. 

CONCLUSIONS. 

The  whole  country  would  be  benefited  by  the  changes  recom- 
mended above.  Farmers  would  become  better  business  men  and  be 
more  prosperous;  the  cost  of  production  would  be  reduced  and  con- 
sumers should  as  a result  get  farm  products  cheaper;  lenders  of 
money  would  find  a better  market  than  at  the  present  time,  and 
there  would  be  less  risk  and  uncertainty;  men  who  would  now  become 
farmers  if  they  could,  would  have  an  opportunity;  farmers  who  are 


RURAL  CREDIT  OR  FARM  FINANCE  IN  THE  UNITED  STATES.  21 

now  tenants  would  have  a better  chance  to  become  owners,  even 
though  unable  to  save  much  during  any  one  year;  no  individual  farmer 
would  suffer  from  loss  if  the  mutual  insurance  system  were  univer- 
sally adopted.  Indeed,  from  every  point  of  view,  there  would  seem 
to  be  many  reasons  for  gradually  making  the  various  changes  sug- 
gested above.  The  need,  however,  is  for  a year  or  two  of  study  in 
order  that  much  of  the  detail  may  be  worked  out.  Much  can,  how- 
ever, be  done  at  once. 

To  be  sure,  there  will  be  no  opposition,  but  good  statesmanship 
would  not  allow  this  to  obstruct  progress.  Some  lawyers  and  ab- 
stract companies  will  probably  object  to  an  improvement  in  the  title 
system  because  they  gain  more  from  the  present  uncertainty.  Some 
mortgage  loan  companies  now  in  existence  will  probably  object 
because  it  would  take  from  them  the  large  commissions  which  some 
of  them  now  make.  Possibly  some  insurance  companies  would  object 
because  now  they  frequently  reap  great  profits  from  insuring  farmers 
against  loss.  Many  objections  of  various  kinds  will  come  to  the 
minds  of  all  who  read  the  above  suggestions  with  care,  but  no  lasting 
or  legitimate  objection  has  come  to  the  mind  of  the  writer. 

Resources  of  the  different  classes  of  financial  institutions  in  the  United  States  and  in 

Wisconsin. 

UNITED  STATES. 


National  banks  (number  of  institutions,  7,277). 


Items, 

Resources. 

Average  per 
institution. 

Per  cent 
of  total. 

Loans,  discounts,  and  overdrafts,  total 

$5, 634, 236, 044.  79 

$774, 252.  58 

54.3 

Secured  by  real  estate  (including  mortgage  owned). . . 

65,112,003.  29 

8,947.  64 

.6 

Secured  by  collateral  other  than  real  estate 

2,004,993,992. 88 

275,524. 80 

19.3 

All  other  loans 

3,540,732,790.  84 

486, 564.  90 

34.1 

Overdrafts 

23,397,257.  78 

3,215. 23 

.2 

Bonds,  securities,  etc.,  including  premiums  thereon,  total. 

1,762,388,311.29 

242, 186. 11 

17.0 

United  States  bonds 

754,744,891.34 

103,716.49 

7.3 

State,  county,  and  municipal  bonds 

176,284,278.  64 

24,224.  86 

1.7 

Railroad  bonds 

361,221,071.31 

49, 638.  73 

3.5 

Bonds  of  other  public-service  corporations 

182, 297,622.00 

25,051.21 

1.8 

Other  bonds,  stocks,  warrants,  etc 

287,840,448.00 

39,554.82 

2.8 

Banking  house,  furniture,  and  fixtures 

228,840,419. 09 

31,447.08 

2.2 

Other  real  estate  owned 

24, 168, 885. 00 

3,321.27 

.2 

Due  from  banks 

1,376, 785,821.33 

189,196. 90 

13.3 

Cheeks  and  other  cash  items 

31,155,316. 27 

4,281.34 

.3 

Exchange  for  clearing 

286,321,804.  73 

39, 346. 13 

2.8 

Actual  cash  on  hand,  total 

998,061,441.05 

137,152. 87 

9.6 

Gold  coin 

153,411,301.23 

21,081.67 

1.5 

Gold  certificates 

434,354,210. 00 

59, 688.  64 

4.2 

Silver  dollars 

14,418,204.00 

1,981.34 

.1 

Silver  certificates 

140, 277,909.00 

19,276.89 

1.4 

Subsidiary  and  minor  coins 

21,789,060. 82 

2,994.  24 

.2 

Legal-tender  notes 

185,219,602. 00 

25,452.  74 

1.8 

National-bank  notes 

48,591,154.00 

6, 677. 36 

.5 

Other  resources 

41,090,650.76 

5, 646. 65 

.4 

Total  resources 

10,383,048,694.  31 

1,426,830. 93 

100.0 

22  KURAL  CREDIT  OR  FARM  FINANCE  IN  THE  UNITED  STATES. 


Resources  of  the  different  classes  of  financial  institutions  in  the  United  States  and  in 

Wisconsin — Continued . 

UNITED  STATES— Continued. 


State  banks  (number  of  institutions,  12,864). 


Loans,  discounts,  and  overdrafts,  total 

Secured  by  real  estate  (including  mortgage  owned). . . 

Secured  by  collateral  other  than  real  estate 

All  other  loans 

Overdrafts 

Bonds,  securities,  etc.,  including  premiums  thereon,  total. 

United  States  bonds 

State,  county,  and  municipal  bonds 

Railroad  bonds 

Bonds  of  other  public-service  corporations 

Other  bonds,  stocks,  warrants,  etc 

Banking  house,  furniture,  and  fixtures 

Other  real  estate  owned 

Due  from  banks 

Checks  and  other  cash  items 

Exchanges  for  clearing 

Actual  cash  on  hand,  total 

Gold  coin 

Gold  certificates 

Silver  dollars 

Silver  certificates 

Subsidiary  and  minor  coins 

Legal-tender  notes 

National-bank  notes 

Cash  not  classified 

Other  resources 

Total  resources 


Loans,  discounts,  and  overdrafts,  total 

Secured  by  real  estate  (including  mortgage-owned) 

Secured  by  collateral  other  than  real  estate 

.\11  other  loans 

Bonds,  securities,  etc.,  including  premiums  thereon,  total. . 

United  States  bonds 

State,  county,  and  municipal  bonds 

Railroad  bonds 

Bonds  of  other  public-service  corporations 

Other  bonds,  stocks,  warrants,  etc 

Banking  house,  furniture,  and  fixtures 

Other  real  estate  owned 

Due  from  banks 

Checks  and  other  cash  items 

Exchanges  for  clearing 

Actual  cash  on  hand,  total 

Gold  coin : 

Gold  certificates 

Silver  dollars 

Silver  certificates 

Subsidiary  and  minor  coins 

Legal-tender  notes 

National-bank  notes 

Cash  not  classified 


Resources. 

Average  per 

Per  cent 

institution. 

of  total. 

$2, 439, 414, 667.  62 

8189,631.12 

65.1 

489,660,852.  27 

38,064.  43 

13.1 

606,377,489.15 

47, 137. 55 

16.2 

1,311,054,107.83 

101,916. 52 

35.0 

32,322,218. 37 

2,512.  61 

.9 

315,550,863.85 

24,529.  76 

8.4 

2, 848,777. 50 

221.45 

.1 

55, 096,142.18 

4,282.97 

1.5 

75,753,959. 38 

5,888.83 

2.0 

52,742,087.88 

4,099. 98 

1.4 

129,109,896. 91 

10,036. 53 

3.4 

112, 390,230.08 

8,736.80 

3.0 

22,725, 359.  65 

1,766.59 

.6 

525,822,785.89 

40,875.53 

14.0 

16,591,367.13 

1,289.  75 

.4 

61,263,978. 55 

4, 762.  44 

1.6 

236,662,497. 38 

18,397.27 

6.3 

46,341,295. 47 

3,602.40 

1.2 

45,338,470.00 

3, 524.  45 

1.2 

7,746,153.00 

602.16 

.2 

26,588,194.00 

2, 0()6. 87 

.7 

8,342,939.36 

648.  55 

.2 

34,253,423.00 

2, 662. 73 

.9 

25,600,890.00 

1,990.12 

.7 

42,451,132.  55 

3,299. 99 

1.1 

17,364, 546. 20 

1,349.  86 

.5 

3, 747,786, 296.  35 

291,339.11 

100.0 

Mutual  savings  banks  (number  of  institu- 

tions,  635). 

Resources. 

Average  per 
institution. 

Per  cent 
of  total. 

81,809, 680, 21 4. 95 

82,849,890.10 

48.1 

1,602,646,798.55 

2,523,8.53.23 

42.6 

134, 202, 870. 38 

211,. 343. 10 

3.6 

72, 830, 546.  02 

114,693.77 

1.9 

1,715,516,716.41 

2, 701,601.12 

45.6 

12,214,847.52 

19,2.35. 98 

.3 

7.53, 893, 273.. 30 

1,187, 233.  .50 

20.0 

781,581,839.63 

1,230,837.54 

20.8 

92, 445, 197. 09 

145,582. 99 

2.5 

75,381,558.87 

118,711.12 

2.0 

.36,  .398, 553.  .37 

.57,320.56 

1.0 

9,073,933.71 

14,289.66 

.2 

1.54, 773,. 302. 26 

243,737.48 

4.1 

929,385.76 

1,463.60 

0) 

94, 169.  29 

148.30 

(1) 

15,791,('>46.85 

24,868.74 

.4 

2,784,666.39  1 

4, 385.  .30 

.1 

3,3.57,680.00 

5, 287. 69 

.1 

182,757.00 

287. 81 

(G 

905.683.00 

1,426.27 

0) 

143,151.71 

225.44 

(') 

1,918,0.34.00 

3,020.53 

.1 

3,318,778.00  J 

5. 226. 42 

.1 

3,180,896.75 

5,009.29 

. 1 

20.143,703.01  1 

31,722.37 

. 5 

3,762,401,625.61 

5,925,041.93 

100.0 

Other  resources 

'Potal  resources 


1 T/ess  than  one-tenth  of  1 per  cent. 


RURAL  CREDIT  OR  FARM  FINANCE  IN  THE  UNITED  STATES.  23 

Resources  of  the  different  classes  of  financial  institutions  in  the  United  States  and  in 

W isconsin — Continued . 

UNITED  STATES— Continued. 


Resources. 

Average  per 
institution. 

Per  cent 
of  total. 

Loans,  discounts,  and  overdrafts,  total 

$605,591,964.03 

$484,861.46 

68.1 

Secured  by  real  estate  (including  mortgages  owned).. . 

361,260,042. 96 

289,239.43 

40.6 

Secured  by  collateral  other  than  real  estate 

71,709,510. 39 

57,413. 54 

8.1 

All  other  loans 

171,026,594. 35 

136, 930. 82 

19.2 

Overdrafts 

1,595,816.  33 

1,277.  68 

.2 

Bonds,  securities,  etc.,  including  premiums  thereon, total. 

133,752,180. 46 

107,087.41 

15.0 

United  States  bonds 

1,011,686.58 

810. 00 

.1 

State,  county,  and  municipal  bonds 

26,033,963.50 

20, 843. 85 

2.9 

Railroad  bonds 

11,417,093. 70 

9, 140. 99 

1.3 

Bonds  of  other  public-service  corporations 

8, 694, 777. 88 

6,961.39 

1.0 

Other  bonds,  stocks,  warrants,  etc 

86,594,658.80 

69, 331. 19 

9.7 

Banking  house,  furniture  and  fixtures 

24,937,732.  28 

19,966. 16 

2.8 

Other  real  estate  owned 

5,456,431.46 

4,368. 64 

.6 

Due  from  banks 

87,616,131.20 

70,149.02 

9.8 

Checks  and  other  cash  items 

1,559,685.24 

1,248.75 

.2 

Exchanges  for  clearing 

1,969,572.17 

1,576.92 

.2 

Actual  cash  on  hand,  total 

26,616,689.93 

21,310.40 

3.0 

Gold  coin 

12,899,725.78 

10,328. 04 

1.4 

Gold  certificates 

1,516,110.00 

1,213. 86 

.2 

Silver  dollars 

699, 767. 00 

560.  26 

.1 

Silver  certificates 

1,003,642.00 

803.56 

.1 

Subsidiarv  and  minor  coins 

725,216.  42 

580.  64 

.1 

Legal-tender  notes 

4, 623, 408. 00 

3, 701.  69 

.5 

National-bank  notes 

1, 904, 792. 00 

1,525.05 

.2 

Cash  not  classified 

3,244,028.73 

2,597.30 

.4 

Other  resources 

2,411,290.24 

1,930.58 

.3 

Total  resources 

889,911,677.01 

712,499.34 

100.0 

Stock  savings  banks  (number  of  institutions, 
1,249). 


Items. 


Loan  and  trust  companies  (number  of 
institutions,  1,251). 


Resources. 

Average  per 
institution. 

Per  cent 
of  total. 

$2,429, 421,081.30 

$1,941,983.28 

52.1 

467,531,456.  44 
1,289,452, 721.54 
668,6.50,649.  78 
3,786,253. 54 

373,726.18 
1,030, 737.  .59 
534,492.  93 
3,026.  58 

10.0 

27.6 

14.3 

.1 

1,114,778,687.06 

891,110.  06 

23.9 

2,224,692.  43 
187,123,910.87 
371,707,846.  78 
212, 593,716.  76 
341,128, 520. 22 

1,778. 33 
149,579. 47 
297,128.  57 
169,939.02 
272,684.  67 

8.0 

4.6 

7.3 

111,480,132.70 
31,600,970.  01 
617,605,590.28 
8,058,125.  67 
13,705,610.71 

89,112.  82 
25,260.  57 
493, 689.  52 
6, 441.35 
10,955.  72 

2.4 

.7 

13.2 

.2 

.3 

269,825,566.23 

215,687.90 

5.8 

16,203,972.08 
1.38,557,100.  00 
1,578,972.00 

25.273.690.00 
3,  .540, 249. 15 

21.664.308.00 
24,854, 740.  00 

38.152.535.00 

12,952. 82 
110,757.  07 
1,262.17 
20,202.  79 
2,829.  94 
17,317. 59 
19,867.90 
30,497.63 

.3 

3.0 

0) 

.5 

.1 

.5 

.5 

.8 

68,635,104.75 

54,864.19 

1.5 

4, 665,110,868.71 

3,729,105.  42 

100.0 

Loans,  discounts,  and  overdrafts,  total 

Secured  by  real  estate  (including  mortgage  owned). . 

Secured  by  collateral  other  than  real  estate 

All  other  loans 

Overdrafts 

Bonds,  securities,  etc.,  including  premiums  thereon,  total. 

United  States  bonds 

State,  county,  and  municipal  bonds 

Railroad  bonds 

Bonds  of  other  public-service  corporations 

. Other  bonds,  stocks,  warrants,  etc 

Banking  house,  furniture,  and  fixtures 

Other  real  estate  owned 

Due  from  banks 

Checks  and  other  cash  items 

Exchanges  for  clearing 

Actual  cash  on  hand,  total 

Gold  coin 

Gold  certificates 

Silver  dollars ] . ’ 

Silver  certificates ” i 

Subsidiary  and  minor  coins 

Legal-tender  notes 

National-banknotes 

Cash  not  classified !! ! ! X ! ! ! 

Other  resources 

Total  resources 


• Less  than  one-tenth  of  1 per  cent. 


24  KUEAL  CREDIT  OR  FARM  FINANCE  IN  THE  UNITED  STATES, 


Resources  of  the  different  classes  of  financial  institutions  in  the  United  States  and  in 

Wisconsin — Continued . 

UNITED  STATES— Continued. 


Private  banks  (1,116). 

Items. 

Resources. 

Average  per 
institution. 

Per  cent 
of  total. 

*128,045,872.21 

*114,736.44 

70.0 

Secured  by  real  estate  (including  mortgage  owned)... 

37, 536, 422. 83 
16,316, 121.. 32 
71,559,680.21 

33,6.34.  79 
14, 620. 18 
64, 121. 58 
2,359.90 

20.5 

8.9 

38. 1 

2,633,647.85 

1.4 

Bonds,  securities,  etc.,  including  premiums  thereon,  total. . 

9, 869, 645. 22 

8,843.77 

.5.4 

United  States  bonds 

410,282.47 
2,466,506.72 
488,547.28 
1,418,  .865. 04 
5,125,443.71 

367. 64 

.2 

State,  county,  and  municipal  bonds 

2,210.13 

461.92 

1.3 

Railroad  bonds 

.2 

Bonds  of  other  public-service  corporations 

1,271.38 
4, 592. 69 

.8 

Other  bonds,  stocks,  warrants,  etc 

2.8 

Banking  house,  furniture,  and  fixtures 

4,766,982.16 
4. 854,  ,368. 27 
26,168,941.51 
817,722.72 

4,271.49 

2.6 

Other  real  estate  owned 

4, 349.  79 

2.7 

Due  from  banks . 

23. 448.  87 

14.3 

Checks  and  other  cash  items 

732.  73 

.4 

Exchange,.'?  for  clearing  

221,775. 82 

198.  72 

.1 

Actual  ca.sh  on  band  total  

7, 189, 327. 84 

6, 442. 05 

3.9 

Gold  coin 

1,201,415.08 

459. 730. 00 

297. 282. 00 

425.728.00 
311,955. 37 

1,076.54 

411.94 

. 7 

Gold  certificates 

.3 

Silver  dollars  . . 

266. 38 

.2 

Silver  certificates  . . 

381. 48 

.2 

Subsidiarv  and  minor  coins 

279.  .53 

• 2 

T/ega,l-tender  notes  

655, 952. 00 

587. 77 

!4 

National-hank  notes  

976,562.00 

2,860,703.39 

875. 06 

. 5 

Cash  not  cla'?sified 

2,563.35 

1.6 

Other  resources  

889,584.93 

797. 12 

.5 

Total  resources  

182, 824, 220. 68 

163, 820. 98 

100.0 

WISCONSIN. 


Items. 

National  banks  (number  of  institutions,  128). 

Resources. 

Average  per 
institution. 

Per  cent 
of  total. 

Loans,  discounts,  and  overdrafts,  total 

Secured  by  real  estate  (including  mortgage  owned) . . . 

Secured  by  collateral  other  than  real  estate 

All  other  loans 

.*102,859,737. 73 

*803,591.70 

56.8 

1,285,816.20 

25,569,239.17 

75,642,724.51 

361,957.85 

10,045.44 

199,759.68 

590,958.79 

2,827.80 

.7 

14.1 

41.8 

.2 

Overdrafts  . . 

Bonds,  securities,  etc.,  including  premiums  thereon,  total. . 

United  States  bonds 

State,  county,  and  municipal  bonds 

Railroad  bonds 

35,890,714.71 

280,396. 21 

19.8 

13,400,423.80 

6,067,775.26 

5,387,770.65 

5.071.746.00 

5.962.999.00 

104,690.81 
47, 404. 49 
42,091.96 
39,623.02 
46, 585. 93 

7.4 

3.4 
3.0 
2.8 
3.3 

Bonds  of  other  public-service  corporations 

Other  bonds,  stocks,  warrants,  etc 

Banking  house,  furniture,  and  fixtures 

Other  real  estate  owned 

Due  from  banks 

2,962,209.21 

347,890.57 

24,505,644.56 

373,051.51 

829,643.85 

23,142.26 

2,717.90 

191,450.35 

2,914.46 

6,481.59 

1.6 
.2 
13. 5 
.2 
. 5 

Checks  and  other  cash  items 

Exchanges  for  clearing 

Actual  cash  on  hand,  total 

Gold  coin 

12,524,846.80 

97,850.37 

6.9 

2,448,509.90 

3.724.610.00 

251.705.00 

1.865.632.00 
310,473.90 

3.122.633.00 

801.283.00 

19,128.98 

29,098.52 

1,966.45 

14,575.25 

2,425.58 

24,395.57 

6, 260. 02 

1.4 

2.1 

.1 

1.0 

.2 

1.7 

.4 

Gold  certificates 

Silver  dollars 

Silver  certificates 

Subsidiary  and  minor  coins 

Legal-tender  notes 

National-bank  notes 

Other  resources 

656,814.20 

5,131.36 

.4 

Total  resources 

180,950,553.14 

1,413.676. 20 

100.0 

RURAL  CREDIT  OR  FARM  FINANCE  IN  THE  UNITED  STATES.  25 


Resources  of  the  different  classes  of  financial  institutions  in  the  United  States  and  in 

Wisconsin — Continued . 

WISCONSIN— Continued. 


State  banks  (number  of  institutions,  517). 


Items. 

Resources. 

Average  per 
institution. 

Per  cent 
of  total. 

Loans,  discounts,  and  overdrafts,  total 

$101,025, 128. 64 

$195, 406. 44 

70.0 

Secured  by  real  estate  (including  mortgage  owned)  — 

32,547, 729. 43 

62,954.99 

22.6 

Secured  by  collateral  other  than  real  estate 

17,040, 166.73 

32,959.70 

11.8 

All  other  loans 

50, 726,570. 31 

98,117.16 

35.1 

Overdrafts 

710,662.17 

1,374.59 

.5 

Bonds,  securities,  etc.,  including  premiums  thereon,  total. . 

14,035,386.82 

27, 147.  75 

9.7 

United  States  bonds 

249,  700.  00 

482. 98 

.2 

State,  county,  and  municipal  bonds 

3, 122,114.30 

6,038.91 

2.2 

Railroad  bonds 

2,816,208.  52 

5,447.21 

2.0 

Bonds  of  other  public-service  corporations 

3,592,712. 23 

6,949. 15 

2.5 

Other  bonds,  stocks,  warrants,  etc 

4,254,651.77 

8,229. 50 

2.9 

Banking  house,  furniture,  and  fixtures 

3,200,487.89 

6, 190.50 

2.2 

Other  real  estate  owned 

353, 738.  67 

684. 21 

.2 

Due  from  banks 

19,024,855.80 

36, 798. 56 

13.2 

Checks  and  other  cash  items 

423, 762. 59 

819. 66 

.3 

Exchanges  for  clearing 

304,031.33 

588. 07 

.2 

Actual  cash  on  hand,  total 

5,938,247.06 

11,485.97 

4.1 

Gold  coin 

1,631,820.  00 

3,156.32 

1.1 

Gold  certificates 

556, 910. 00 

1,077.20 

.4 

Silver  dollars 

283,463.00 

548. 28 

.2 

Silver  certificates 

399,257. 00 

772. 26 

.3 

Subsidiarv  and  minor  coins 

276,317.49 

534. 46 

.2 

Legal-tender  notes 

449, 749. 00 

869.92 

.3 

National-bank  notes 

932,054.00 

1,802. 81 

.6 

Cash  not  classified 

1,408,676. 57 

2, 724.  71 

1.0 

Other  resources 

21,238.58 

41.08 

(1) 

Total  resources 

144,326,877.39 

279, 162.  24 

100.0 

Mutual  savings  banks  (number  of  institu- 

' 

tions,  3). 

Average  per 

Per  cent 

AVC-OWLil  L/Co« 

institution. 

of  total. 

Loans,  discounts,  and  overdrafts,  total 

$1,025,233.59 

$341, 744. 53 

61.2 

Secured  by  real  estate  (including  mortgage  owned). . . 

937, 834.51 

312,611.50 

56.0 

Secured  by  collateral  other  than  real  estate 

87,399.08 

29, 133.03 

5.2 

Bonds,  securities,  etc.,  including  premiums  thereon,  total. 

492, 771.21 

164,257. 07 

29.4 

State,  county,  and  municipal  bonds 

339,040.81 

113,013.60 

20.2 

Railroad  bonds 

45, 163. 74 

15,054. 58 

2.7 

Other  bonds,  stocks,  warrants,  etc 

108,566.66 

36, 188. 89 

6.5 

Banking  house,  furniture  and  fixtures 

19,523.20 

6, 507. 73 

1.2 

Due  from  banks 

117,381.30 

39, 127. 10 

7.0 

Checks  and  other  cash  items 

11,332.32 

3, 777. 44 

.7 

Actual  cash  on  hand,  total 

8,210.95 

2, 736.98 

.5 

Gold  coin 

1, 200.00 

400.00 

.1 

Gold  certificates 

1, 050. 00 

350. 00 

.1 

Silver  dollars 

149. 00 

49. 67 

(‘) 

Silver  certificates 

1, 708. 00 

569.33 

.1 

Subsidiary  and  minor  coins 

517.95 

172. 65 

0) 

Legal-tender  notes 

1,438.00 

479.33 

.1 

National-bank  notes 

2, 148. 00 

716. 00 

.1 

Total  resources 

1,674, 452. 57 

558, 150.  86 

100. 0 

1 Less  than  one-tenth  of  1 per  cent, 


26  RURAL  CREDIT  OR  FARM  FINANCE  IN  THE  UNITED  STATES. 

Resources  of  the  different  classes  of  financial  institutions  in  the  United  States  and  in 

Wisconsin — Continued . 

WISCONSIN— Continued. 


Items. 


Stock  savings  banks  (number  of  institutions, 
13). 


Resources. 

Average  per 
institution. 

Per  cent 

1 of  total. 

*11,318,514.45 

*870,  654.  96 

55.9 

1,273,695.11 

97,  976. 55 

6.3 

339, 943.  66 

26,149.51 

1 1.7 

9, 650, 054. 17 

742,311.86 

47.7 

54,821.51 

4,217.  04 

.3 

3,833.988.64 

294, 922.  20 

18.9 

4,500.00 

346. 15 

(‘) 

3,004,853.16 

231,142. 55 

14.8 

154, 000. 00 

11,846.  15 

.8 

525,935.99 

40, 456.  61 

: 2.6 

144, 699.  49 

11,130.73 

.7 

433,  450.  90 

34, 111.61 

2.2 

86,  247.  71 

6, 6:34.  44 

.4 

3,377,735.00 

259,825.77 

, 16.7 

82,541.39 

6, 349. 34 

I .4 

181,296.55 

13, 945.  89 

‘ .9 

916, 127.  90 

70,  471. 38 

4. 5 

269, 199. 50 

20,  707.  65 

1.3 

5,880. 00 

452.31 

(*) 

11,233.00 

864. 08 

. 1 

6,  754.  00 

519.54 

(') 

61,749.01 

4,  749.  92 

.3 

147,  487.  00 

11,. 345.  15 

. 7 

32, 494.  00 

2,  499. 54 

.2 

381,331.39 

29,333.  18 

1.9 

5,370.  73 

413. 13 

0) 

20,245,273.  27 

1,557,328.71 

100.0 

Loan  and  trust  companies  (number  of  insti- 

tutions,  11). 

Resources . 

Average  per 

Per  cent 

institution. 

of  total. 

*6,799,442.54 

•1618, 131. 14 

61.6 

4,247,894.87 

386, 172.  26 

38.5 

1,901,358.  24 

172,850.  75 

17.2 

595,402.  61 

54, 127.  51 

5.4 

54,786.  82 

4,980.  62 

. 5 

.i,  065, 008.  44 

187,728.04 

18.7 

35, 100.  00 

3, 190.  91 

.3 

135, 667.  98 

12, 333.  45 

1.2 

527, 609.  46 

47,964.  50 

4.8 

1,R6,382.  74 

107,852.  98 

10.7 

180,248.  26 

16,386.21 

1.6 

120,848.  95 

10,986.27 

1. 1 

4, 893.  92 

444.  90 

Q) 

1,610,812.09 

146,437.  46 

14.6 

74,402.  75 

6, 763.  89 

7 

2, 474. 18 

225.  93 

(‘) 

66, 675.  20 

6,061.38 

.6 

10, 440.  00 

949.09 

. 1 

5, 830.  00 

530.  00 

. 1 

1,394.  00 

125.  73 

(*) 

4,961.00 

451.00  1 

G) 

754.  82 

68.62 

(G 

3,295.00 

299.  55 

(>) 

6, 090.  00 

553.  64 

. 1 

33,910.  38 

3,082.76 

.3 

294, 682. 16 

26,789.29  ■ 

2.  7 

11,039,240.23 

1,003,567.  29 

100.0 

Loans,  discounts,  and  overdrafts,  total. 


Secured  by  real  estate  (including  mortgage  owned). . 

Secured  by  collateral  other  than  real  estate 

All  other  loans 

Overdrafts. 


Bonds,  securities,  etc.,  including  premiums  thereon,  total 

United  States  bonds 

State,  county,  and  municipal  bonds 

Railroad  bonds 

Bonds  of  other  public  service  corporations 

Other  bonds,  stocks,  warrants,  etc 

Banking  house,  furniture,  and  fixtures. 

Other  real  estate  owned  .*. 

Due  from  banks 

Checks  and  other  cash  items 

Exchanges  for  clearing 


Actual  cash  on  hand,  total 

Gold  coin 

Gold  certificates 

Silver  dollars 

Silver  certificates 

Subsidiary  and  minor  coins. 

Legal- tender  notes 

National-bank  notes 

Cash  not  classified 


Other  resources 

Total  resources . 


Items. 


Loans,  discounts,  and  overdrafts,  total 

Secured  by  real  estate  (including  mortgage  oAraed) 

Secured  by  collateral  other  than  real  esl  ate 

All  o1  her  loans 

Overdrafts 

Bonds,  securities,  etc.,  including  premiums  thereon,  total. 

United  States  bonds 

State,  count j',  and  municipal  bonds 

Railroad  bonds 

Bonds  of  other  public-service  corporations 

Other  bonds,  stocks,  warrants,  etc 

Banking  house,  furniture,  and  fixtures 

Other  real  estate  owned 

Due  from  banks 

Checks  and  other  cash  items 

Exchanges  and  clearings 

Actual  cash  on  hand,  total 

Gold  coin 

Gold  certificates 

Silver  dollars 

Silver  certificates . . ! , 

Subsidiary  and  minor  coins 

Legal-tender  notes 

National-bank  notes 

Cash  not  classified 

Other  resources 

Total  resources 


I liOss  than  one-tenth  of  1 per  cent. 

O 


